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AutoNation (AN) investor relations material
AutoNation Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved 3% revenue growth and 8% adjusted net income growth for 2025, with record gross profit and margin expansion, and four consecutive quarters of year-over-year EPS growth; adjusted EPS rose 16% to $20.22.
Adjusted free cash flow exceeded $1 billion, up 39% year-over-year, with a 125% conversion rate of adjusted net income.
Over $1.5 billion in capital was deployed, including $785 million in share repurchases and $460 million in M&A, reducing share count by 10% year-over-year.
Maintained a strong balance sheet with leverage at 2.44x EBITDA, supporting continued capital allocation flexibility.
Organic growth was driven by higher unit sales, after-sales margins, and five dealership acquisitions in key markets.
Financial highlights
Full year 2025 revenue rose 3% to $27.6 billion, with gross profit up 3% to $4.95 billion.
Q4 revenue was $6.9 billion, down 4% year-over-year, mainly due to a 9% decline in new vehicle sales revenue.
Adjusted net income increased 8% to $770 million; adjusted EPS was $5.08 for Q4 (up 2%) and $20.22 for the year (up 16%).
Adjusted free cash flow for the year was $1.05 billion, or 125% of adjusted net income.
Share repurchases totaled $785 million, reducing shares outstanding by 10%.
Outlook and guidance
Expect the overall market to be slightly down in 2026, with new unit profitability stable at H2 2025 levels.
Used vehicle market expected to remain constrained but improve year-over-year.
After-sales growth anticipated to continue at mid-single-digit rates.
CapEx for 2026 expected to be in line with 2025 levels.
Focus on maintaining strong profit-to-cash conversion and shareholder-focused capital allocation.
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Frequently asked questions
New and Used Cars
AutoNation is an American automotive retailer operating hundreds of outlets across the United States. These retail locations sell new as well as pre-owned vehicles and related services to customers all over the country. The company is headquartered in Fort Lauderdale, Florida and its shares are traded on the NYSE. The company also operates various rent-a-car solutions for customers, even if primary operations are centered around the sale of cars.
The Brainchild of H. Wayne Huizenga
AutoNation, founded in 1996, stands as a significant entity in the U.S. automotive retail landscape. H. Wayne Huizenga, known for his ventures in Waste Management and various Florida sports franchises, was the driving force behind AutoNation's inception. Seeing an opportunity to consolidate the fragmented car dealership market in the US, Huizenga spearheaded a strategy of acquiring and unifying various dealerships under one umbrella brand. Over the years, this approach allowed AutoNation to grow exponentially, positioning it as one of the largest automotive retailers in America. The company introduced certain practices, such as transparent pricing, which aimed to simplify the car-buying process for consumers.
New Cars
With a vast network of dealerships spread across the country, they represent a multitude of car brands, encompassing domestic, imported, and luxury vehicles. Their approach to new car sales emphasizes transparency, often deploying a "no-haggle" pricing strategy. This seeks to offer customers a clear and direct price, potentially streamlining the purchasing process by reducing lengthy negotiations. AutoNation operates in a highly competitive industry, with a list of peers including names such as Sonic Automotive, Penske, Group 1 Automotive, and several others.
Pre-Owned Cars
AutoNation is not only active in the new car segment but also has a significant footprint in the pre-owned and used car market. Their retail locations across the U.S. offer a substantial inventory of pre-owned vehicles, spanning a diverse range of brands, models, and price points. One of AutoNation's distinguishing features in the used car sector is its certification process. Many of their used vehicles available for purchase undergo rigorous inspections and, if necessary, repairs, to meet specific company standards. This process is conducted to ensure buyers receive a car that is reliable and roadworthy straight away. Furthermore, to enhance transparency, AutoNation often provides vehicle history reports, allowing prospective buyers to understand the car's past in terms of ownership, accidents, and maintenance.
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